Accumulative Swing Index - ASI

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DEFINITION of 'Accumulative Swing Index - ASI'

A indicator used by traders to gauge a security's long-term trend by comparing bars which contain its opening, closing, high and low prices throughout a specific period of time. When the ASI is positive, it suggests that the long-term trend will be higher, and when the ASI is negative, it suggests that the long-term trend will be lower.

The ASI is often cited as being developed by Welles Wilder.

INVESTOPEDIA EXPLAINS 'Accumulative Swing Index - ASI'

While the ASI is most often used for futures trading, it can be used for analyzing the price trends of other assets as well. The ASI may be used in conjunction with price charts in order to confirm trendline breakouts, because the same trendline would be penetrated in both situations.

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RELATED FAQS
  1. How is the Accumulative Swing Index calculated?

    The accumulative swing index was created and defined by J. Welles Wilder in "New Concepts in Technical Trading Systems" published ... Read Full Answer >>
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